Bitcoin cash price analysis: bulls defend key support
10:10, 5 March 2020
Bitcoin Cash is attempting to rally above the $300.00 level, with bulls working hard to reclaim last week’s heavy losses.
Bitcoin Cash price analysis shows that the cryptocurrency could test back towards the February high as long as the $300.00 support level holds.
Bitcoin Cash medium-term price trend
Bitcoin Cash has been appearing more bullish over recent days, as the cryptocurrency continues to hold firm above its 200-day moving average.
A broad-based recovery in the cryptocurrency market could propel the BCH/USD pair towards the best levels of 2020.
Bitcoin Cash technical analysis shows that gains above the $340.00 level could provoke a rally towards the $380.00 and possibly the $495.00 level.
Furthermore, the BCH/USD pair is starting to stabilise around the 50 Fibonacci retracement of the 2019 low to the current 2020 high.
Going forward, a loss of the $300.00 level could prompt a major sell-off towards the $250.00 area. However, a strong recovery could take hold if Bitcoin Cash starts to gain traction above the $340.00 level.
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Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis shows that cryptocurrency is bearish over the short term while price trades below the $400.00 level.
Key moving averages on the one-hour and four-hour time frame clearly show that the BCH/USD pair needs to hold its price above the $328.00 level in order to encourage fresh buying demand.
Failure to hold the price above the $328.00 level could see the BCH/USD pair slipping back towards the $300.00 level and possibly the $280.00 level.
Conservative traders may wait for a confirmed breakout from the current monthly price range before initiating fresh positions.
It is noteworthy that a bullish reversal pattern with $200.00 upside potential will form if Bitcoin Cash rallies back towards the $495.00 level.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates that the cryptocurrency has a high probability of staging a recovery while price holds above the $328.00 level. The $380.00 and $495.00 levels are the main bullish targets.
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